Trillion Energy International (XCNQ:TCF) ROC % : -11.92% (As of Mar. 2024)

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What is Trillion Energy International ROC %?

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Trillion Energy International's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was -11.92%.

As of today (2024-06-10), Trillion Energy International's WACC % is 2.61%. Trillion Energy International's ROC % is -0.08% (calculated using TTM income statement data). Trillion Energy International earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Trillion Energy International ROC % Historical Data

The historical data trend for Trillion Energy International's ROC % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Trillion Energy International ROC % Chart

Trillion Energy International Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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-27.13

-54.67

-51.93

-28.65

11.34

Trillion Energy International Quarterly Data
	Dec17	Mar18	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROC %	Get a 7-Day Free Trial															1.92	6.17	2.20	-20.37	-11.92

Trillion Energy International ROC % Calculation

Trillion Energy International's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	-4.665 * ( 1 - 245.33% )	/	( (42.436	+	77.108)	/ 2 )
=	6.7796445	/	59.772
=	11.34 %

where

	Invested Capital		(A: Dec. 2022 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	50.289	-	14.4	-	( 1.258	-	max(0, 15.006	-	8.459	+	1.258	))
=	42.436

	Invested Capital		(A: Dec. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	78.631	-	18.87	-	( 1.594	-	max(0, 23.874	-	6.527	+	1.594	))
=	77.108

Trillion Energy International's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	-15.54 * ( 1 - 39.3% )	/	( (77.108	+	81.094)	/ 2 )
=	-9.43278	/	79.101
=	-11.92 %

where

	Invested Capital		(Q: Dec. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	78.631	-	18.87	-	( 1.594	-	max(0, 23.874	-	6.527	+	1.594	))
=	77.108

	Invested Capital		(Q: Mar. 2024 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	80.245	-	20.012	-	( 0.59	-	max(0, 24.989	-	4.128	+	0.59	))
=	81.094

Note: The Operating Income data used here is four times the quarterly (Mar. 2024) data.

Trillion Energy International (XCNQ:TCF) ROC % Explanation

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.

There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.

Why is ROC % important?

Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.

As of today, Trillion Energy International's WACC % is 2.61%. Trillion Energy International's ROC % is -0.08% (calculated using TTM income statement data). Trillion Energy International earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Be Aware

Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Trillion Energy International ROC % Related Terms

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Trillion Energy International (XCNQ:TCF) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Trillion Energy International Inc (XCNQ:TCF) » Definitions » ROC %

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TRLEF:USA Z620:Germany

Address

838 West Hastings Street, Suite 700, Vancouver, BC, CAN, V6C 0A6

Website

https://www.trillionenergy.com

Trillion Energy International Inc is an oil and gas-producing company with multiple assets throughout Turkey and Bulgaria. The company is 49% owner of the SASB natural gas field, one of the Black Sea's first natural gas development projects; a 19.6% (except three wells with 9.8%) ownership interest in the Cendere oil field; and Bulgaria, the Vranino 1-11 block, a prospective unconventional natural gas property. The company has three operating segments; North America, Turkey, and Bulgaria. It derives a majority of its revenue from Turkey.

Executives

Sean Stofer

Director